How to Write a Purchase Order

How to Write a Purchase OrderA purchase order (PO) is a commercial document issued by a buyer to a seller.

A PO indicates types, quantities, and agreed prices for products or services the seller will provide to the buyer.

There are several different ways of purchasing goods. But for business to business (b2b) and professional purchasing, to avoid disputes later on, it is very important that the purchase order is in writing and contain the information that could be needed.

After the acceptance from the seller of the purchase order, there is a contractual agreement between the buyer and the seller.

That’s also why it is so important that the acceptance should be confirmed by writing.

Basically a purchase order should contain the following:

  • The names of the seller and the purchaser
  • Delivery address
  • Invoice address
  • A clear definition of the goods or services
  • Price and quantity of the products or services
  • Delivery date
  • Terms of payment
  • Terms of delivery
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